ECB Widens Collateral Terms

By

Margit Feher

September 22, 2011

FRANKFURT—The European Central Bank said Wednesday that it will widen the range of securities it will accept as collateral for lending European commercial banks while also limiting the amount of senior unsecured debt it will accept.

Starting next year, the ECB plans to include debt instruments issued by credit institutions and not traded on a regulated market as part of collateral it will accept, it said in a statement. At present,...